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Derivative Markets Have Already Upgraded Britain To Aaa

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http://www.telegraph.co.uk/finance/economics/10489768/Derivative-markets-have-already-upgraded-Britain-to-AAA.html

The cost of insuring British debt against default has fallen below the levels for the US, Switzerland, Japan and every major eurozone state except Germany, marking a dramatic change of view on UK’s economic prospects.

Credit default swaps (CDS), used for insuring and trading sovereign debt, are “pricing” British bonds as if they were top-notch AAA quality. This comes amid growing speculation that rating agencies may soon shift gears and start to upgrade the UK.

The CDS contracts for the UK have been on a downward trend for months as growth picks up, cutting below countries that still have AAA ratings such as Austria, Australia and Canada.

The UK index for five-year debt was trading near 27 on Monday, compared with 32 for the US, 35 for Switzerland, 40 for the Netherlands, 50 for Japan and 51 for France. The only countries trading at a lower level are Germany and the Nordic quartet of Norway, Sweden, Denmark and Finland, now the world’s safe-haven bloc.

AEP talking bullocks or is his analysis correct with this? Is our derivatives rating AAA?

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http://www.telegraph.co.uk/finance/economics/10489768/Derivative-markets-have-already-upgraded-Britain-to-AAA.html

AEP talking bullocks or is his analysis correct with this? Is our derivatives rating AAA?

Well officially I think we're AA+, but as a country with control of our currency and debt only in that currency we're as AAA as AAA can be really. Those spread levels would suggest the derivative market agrees with me.

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http://www.telegraph...ain-to-AAA.html

AEP talking bullocks or is his analysis correct with this? Is our derivatives rating AAA?

It's just the institutional crooks running their QE winnings into Osborne's debt bubble. Greece got upgraded by Moody's yesterday though the economic data is still consistent with a full-blown depression.

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http://www.telegraph.co.uk/finance/economics/10489768/Derivative-markets-have-already-upgraded-Britain-to-AAA.html

AEP talking bullocks or is his analysis correct with this? Is our derivatives rating AAA?

There are reasons other than chance of default that would drive this though. I doubt many derivatives traders expect any of those names to default at all. They'll just be taking a view (ie speculating, looking to profit from spread moves) or hedging with them.

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The ratings agencies? The Wall Street PR guys who only collect a fee when their clients like what they say? The people who rubber stamped bundles of dog poop AAA and are directly complicit in this wholesale crime scene?

Then there is the Credit Default Swap. A crummy betting slip whose concept was so bent to start with it couldn't be called insurance lest it be regulated in some way. A product that was stressed tested once and found to be AIG, and whose only useful purpose is to underscore the power of finance over the state.

And then there is AEP, once a respected and widely blogged journo. Has access to power. His chief ability was to write about criminal events in such cryptic terms that only the well informed had a clue. However, his job decription as a bag man for big money has inevitably lead him to premature senility and his commentators nowadays just take the michael, have a look.

And do bear in mind that the CDS is a bet on default, what this is saying is that we (UK) are not going to take our medicine now but instead <Ctl-P> all the way to a currency crisis. You cannot become so inured of this criminogenic kack as to analyse it, because if you do in a way you legitimise it. There are NO markets, just interventions.

/rant

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